American collection agency

July 14th, 2007 by Questions

Prior to our separation and my ex husband\’s bankruptcy we jointly owned property from an american based company. We live in Canada. I thought the property had been sold, but recently I was informed by a collections agency that it had not and that money was owing. Since my ex filed bankruptcy the creditors are persuing me. What jurisdiction does an american collections agency have in Canada? Do I have to pay this creditor? Can they affect my credit rating?


One Response to “American collection agency”

, Barton Goth GCO Bankruptcy Trustees said:

There is absolutely nothing to prevent an American collection agency from pursuing a debtor who is residing in Canada or any other country. The real question is what rights does that creditor retain in the event of default and how can the foreign creditor go about invoking those rights.

Now techincally speaking the creditor does retain all the normal rights of any Canadian Creditory, the difference is the cost involve as they would normally have to make an application to the Canadian Court, prior to taking any formal proceeding (i.e. garnishment etc.). As a result of having to do this the cost is often prohibitive and as a result very few times do you see american collection agents put much on a debtor past the standard phone calls and threats.

Although, if the property in question is still in the US then they need not involve the Canadian court to seize this property.

As you can see there are a number of uncertainies depending on the specific nature of your situaiton. As a result you are vest to consult with a local trustee and after clarifying a few things they will be in a much better position to help you predict what will take place.

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